UK Mortgage Rates Rise as Lenders Increase Home Loan Costs

Nearly all major UK mortgage lenders have raised home loan costs in recent days, leaving borrowers who expected rates to fall disappointed, according to BBC. Moneyfacts said the average rate on a new two-year deal was 5.65% on Tuesday, while the average five-year product was 5.70%. The article said someone coming off a typical five-year deal could face paying more than £5,000 a year extra on their next mortgage if they borrow the same amount. Analysts said it is unclear whether more increases are coming, but urged borrowers needing a new deal to act early. The pressure has been linked to higher UK government borrowing costs and wider market uncertainty, including the Iran war, which has pushed up the cost of deals.